Gold futures fell on Thursday to a five week low after the dollar rebounded, lowering the investment appeal of the precious metal.
Gold for August dropped $10.90 to end at $872.00 an ounce on the Comex division on the New York Mercantile Exchange. Also on the Nymex, July silver fell 70 cents to settle at $16.48 an ounce.
Crude futures fell more than 2 percent with crude-oil for July delivery recently off its earlier lows, down 78 cents at $135.60 a barrel.
Gold is again taking its cue from oil, which is down, and the dollar, which is up, said Mark O'Byrne, executive director of Gold & Silver Investments Ltd.
The dollar rose as much as 1.1 percent against the euro on speculation the Federal Reserve will raise interest rates to damp inflation. The dollar index, which tracks the greenback against major currency rivals, gained nearly 0.9 percent to 73.88.
The Commerce Department reported an unexpected 1 percent rise in retail sales last month, marking the fastest increase in six months.